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Limited Revisions to Accounting
Standard (AS) 18, Related Party Disclosures
The Council of the Institute
of Chartered Accountants of India has decided to make the following
limited revisions to Accounting Standard (AS) 18, Related Party
Disclosures.
Paragraph 26 of AS 18 is decided
to be revised as under and a new explanatory paragraph 27 is decided
to be added. The limited revisions are shown as underlined.
“26. Items of a similar
nature may be disclosed in aggregate by type of related party
except when separate disclosure is necessary for an understanding
of the effects of related party transactions on the financial
statements of the reporting enterprise.
27. Disclosure of details of particular transactions with
individual related parties would frequently be too voluminous
to be easily understood. Accordingly, items of a similar nature
may be disclosed in aggregate by type of related party. However,
this is not done in such a way as to obscure the importance
of significant transactions. Hence, purchases or sales of goods
are not aggregated with purchases or sales of fixed assets.
Nor a material related party transaction with an individual
party is clubbed in an aggregated disclosure.”
The above revisions would come into
effect in respect of accounting periods commencing on or after
1-4-2003. Earlier application is encouraged.
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